Cases
Jefferson v. Canada, 2022 FCA 81
The taxpayer was assessed under s. 160 on the assumption that he “provided no consideration” for cheques amounting to more than $542,000 that...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 160 - Subsection 160(1) | taxpayer did not demolish s. 160 assessment by showing that he had provided partial consideration for the corporate payments | 280 |
Kufsky v. Canada, 2022 FCA 66
A shareholder loan balance that was owing by the taxpayer was eliminated through dividend declarations backdated to the three preceding years and...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 160 - Subsection 160(1) | per majority, taxpayer estopped from arguing that she had not received a dividend when she had already pocketed at tax benefit from submitting the contrary | 552 |
| Tax Topics - General Concepts - Fair Market Value - Other | property transfer amount not determined net of income taxes | 76 |
| Tax Topics - General Concepts - Estoppel | a taxpayer received dividends for s. 160 purposes where she was estopped from arguing otherwise or because the corporate insolvency did not matter | 307 |
| Tax Topics - General Concepts - Payment & Receipt | dividend was paid by way of retroactive set-off against shareholder loan account | 174 |
| Tax Topics - General Concepts - Illegality | dividend declared and paid by insolvent corporation would be valid | 301 |
Van der Steen v. Canada, 2020 FCA 168
The taxpayer, a lawyer, withdrew $100,000 from his RRSP and “contributed” an amount exceeding the withdrawal amount (and well in excess of the...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 118.1 - Subsection 118.1(1) - Total Charitable Gifts | lack of donative intent for an alleged donation | 194 |
Laliberté v. Canada, 2020 FCA 97
The founder and controlling shareholder of Cirque du Soleil, had been found by the Tax Court to have received a taxable benefit under s. 15(1) (or...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 15 - Subsection 15(1) | any subjective intention of the controlling shareholder not to be enriched did not establish that no taxable benefit | 427 |
| Tax Topics - Income Tax Act - Section 246 - Subsection 246(1) | the Cirque du Soleil’s bearing most of the $41.8M cost of a space trip for its controlling shareholder gave rise to a shareholder benefit | 267 |
Morrison v. Canada, 2020 FCA 93
The taxpayers (Eisbrenner and Morrison) participated in a charitable gift program (the "CHT Program”) which entailed them donating to a...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 118.1 - Subsection 118.1(1) - Total Charitable Gifts | taxpayers failed to demonstrate on balance that they had acquired the donated property | 212 |
Glatt v. Canada (National Revenue), 2019 FC 738
Following his assessment for a s. 163.2 penalty, the taxpayer paid $1M to CRA so as to offset interest which would be borne by him if the...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 164 - Subsection 164(3) | naming of a taxation year respecting a reassessment cancelling a s. 163.2 penalty was not an “error” that precluded the payment of refund interest | 577 |
| Tax Topics - Income Tax Act - Section 152 - Subsection 152(8) | CRA could not treat its statement of a taxation year in its Notice of Reassessment as an error | 385 |
| Tax Topics - Other Legislation/Constitution - Federal - Federal Courts Act - Section 18.1 - Subsection 18.1(2) | extension granted where the taxpayer had continually pursued relief | 415 |
Sarmadi v. Canada, 2017 FCA 131
The only issue before the Court was whether the Tax Court had erred, in connection with the taxpayer’s appeal of a net worth assessment, in...
Vine Estate v. Canada, 2015 DTC 5063 [at 5880], 2015 FCA 125
The taxpayer's return, prepared by his accountants, failed to show $1.07 million of capital gain and $2 million recapture of depreciation...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 152 - Subsection 152(4) - Paragraph 152(4)(a) - Subparagraph 152(4)(a)(i) | filing amended return does not nullify previous lack of reasonable care/quaere whether neglect can be vicarious though outside accountants | 553 |
Swirsky v. Canada, 2014 DTC 5037 [at 6723], 2014 FCA 36, aff'g 2013 TCC 73, 2013 DTC 1078 [at 431]
The trial judge found (at para. 71) that as the Minister had not applied GAAR until the confirmation stage, the Minister was required to show that...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(c) | no objectively reasonable expectation of taxable dividends | 459 |
| Tax Topics - General Concepts - Purpose/Intention | no objectively reasonable income-producing purpose | 85 |
Palmerino v. Canada (National Revenue), 2013 FC 919
CRA began an official investigation of the taxpayer for tax fraud on 7 April 2008. The taxpayer made a request for information regarding the...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Other Legislation/Constitution - Federal - Privacy Act - Paragraph 22(1)(a) | onus on CRA to prove communications were part of criminal investigation | 70 |
Newmont Canada Corporation v. Canada, 2012 DTC 5138 [at 7292], 2012 FCA 214
The Minister assumed that $7,559,684 of an amount claimed by the taxpayer as a bad debt dedution in respect of a loan held by it comprised...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 12 - Subsection 12(1) - Paragraph 12(1)(c) | allocation of all of debt settlement payment to principal rather than interest grounded a full bad debt claim for the "unpaid" interest | 103 |
| Tax Topics - Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(b) - Capital Loss v. Loss | loan made as investment in mining business | 170 |
| Tax Topics - Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(p) - Subparagraph 20(1)(p)(i) | interest was bad as settlement proceeds not allocated to it | 222 |
House v. Canada, 2011 DTC 5142 [at 6131], 2011 FCA 234
The taxpayer and his wife were the only shareholders of "Hunt River Camps/Air Northland Ltd." (Hunt River), a business from which the taxpayer had...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - General Concepts - Evidence | credible oral evidence can be uncorroborated by documents | 96 |
Khan v. The Queen, 2009 DTC 804, 2009 TCC 248 (Informal Procedure)
In a motion by the Crown to quash an appeal by the taxpayer on the basis that it had been filed too late, the onus was on the Crown to show that...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 169 - Subsection 169(1) | 36 |
Canada v. Anchor Pointe Energy Ltd., 2007 DTC 5379, 2007 FCA 188
The Minister initially reassessed the taxpayer on the assumption that it had purchased seismic data for more than its fair market value, so that a...
Transocean Offshore Ltd. v. Canada, 2005 DTC 5201, 2005 FCA 104
Sharlow J.A. stated (at p. 5205):
"There may be situations where fairness would require that no onus be placed on a taxpayer to rebut a specific...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 212 - Subsection 212(1) | damages to lessor for advance lease repudiation were in lieu of rent | 308 |
Canada v. Loewen, 2004 DTC 6321, 2004 FCA 146
The Crown was permitted to defend a reassessment it had made of the taxpayer (disallowing a portion of the taxpayer's capital cost allowance...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 152 - Subsection 152(9) | Crown could plead that none of an expense was deductible to support a reassessment that partially disallowed the expense for a different reason | 98 |
Canada v. Anchor Pointe Energy Ltd., 2003 DTC 5512, 2003 FCA 294
The portion of the Minister's Reply to the Notice of Appeal that stated that in reassessing the Minister had assumed that seismic data acquired by...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 152 - Subsection 152(5) | objection does not extend normal reassessment period | 246 |
| Tax Topics - Income Tax Act - Section 152 - Subsection 152(9) | Minister could rely on a new argument (suggesting none of CEE deductible) in confirming a reasssessment partially disallowing the CEE | 158 |
| Tax Topics - Income Tax Act - Section 165 - Subsection 165(5) | 246 |
Capital Vision Inc. v. MNR, 2003 DTC 5054 (FCTD)
Before going on to find that the Minister had failed to establish that he had issued requirements under s. 231.2(1) for a disclosure of the names...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 231.2 - Subsection 231.2(1) | 174 |
Roseland Farms Ltd. v. Canada, 2001 DTC 5392, 2001 FCA 167
In rejecting a submission that the shifting of the burden of proof to the taxpayer to disprove the Minister's assumptions can be prevented through...
Cardella c. Canada, 2001 DTC 5251, 2001 FCA 39
Given that the Minister, in his Reply, pleaded by way of assumption that the taxpayer had no reasonable expectation of profit from his interest in...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 3 - Paragraph 3(a) - Business Source/Reasonable Expectation of Profit | 85 | |
| Tax Topics - Income Tax Act - Section 9 - Capital Gain vs. Profit - Real Estate | barrier to resale of rental properties | 106 |
C W Agencies Inc v. The Queen, 2000 DTC 2372 (TCC), aff'd 2002 DTC 6740, 2001 FCA 393
After noting that a Revenue Canada auditor who was reviewing the taxpayer's SR&ED claims, seemed "to have been unwilling to consider any evidence...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Scientific Research & Experimental Development | 85 |
Coffen v. The Queen, 97 DTC 5552, [1998] 3 CTC 285 (Ont. Ct. J. (G.D.))
Sheppard J. noted that (at p. 5554) that in an income tax prosecution "the Crown must prove beyond reasonable doubt that each item of income...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 150 - Subsection 150(1) | 30 | |
| Tax Topics - Income Tax Act - Section 239 - Subsection 239(1) - Paragraph 239(1)(d) | 96 |
Canderel Ltd. v. R., 98 DTC 6100, [1998] 1 S.C.R. 147, [1998] 2 C.T.C. 35
In the course of finding that a taxpayer, which amortized tenant inducement payments for financial statement purposes, was entitled to immediately...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 18 - Subsection 18(9) | 57 | |
| Tax Topics - Income Tax Act - Section 9 - Accounting Principles | not following matching principle accorded with well-accepted business practices | 153 |
| Tax Topics - Income Tax Act - Section 9 - Timing | lease inducement payments currently deductible | 121 |
Hickman Motors Ltd. v. Canada, 97 DTC 5363, [1997] 2 S.C.R. 336, [1998] 1 CTC 213
Because the taxpayer's evidence was not challenged or contradicted by the Minister, the taxpayer had demolished the Minister's assumption and the...
Bosa Bros. Construction Ltd. v. The Queen, 96 DTC 6193 (FCTD)
The taxpayer acquired all the shares of a corporation ("Topaz"), whose ability to take an inventory write-down for an apartment building depended...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 13 - Subsection 13(21) - Depreciable Property | 111 | |
| Tax Topics - Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(p) - Subparagraph 20(1)(p)(ii) | interest-free advances to US sub by developer | 35 |
| Tax Topics - Income Tax Act - Section 40 - Subsection 40(2) - Paragraph 40(2)(g) - Subparagraph 40(2)(g)(ii) | interest-free advances made only re loss protection | 49 |
| Tax Topics - Income Tax Act - Section 9 - Capital Gain vs. Profit - Real Estate | sale of stratified title property 1 year later on capital account/ secondary intention re ill-affordable property | 210 |
CPL Holdings Ltd. v. The Queen, 95 DTC 5253, [1995] 1 CTC 447 (FCTD)
Cullen J. (at p. 5258) applied the presumption that "the burden of proof ... rests with the tax department in the case of a provision imposing a...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 55 - Subsection 55(2) | s. 55(2) did not apply as purpose was creditor-proofing | 157 |
Québec (Communauté urbaine) v. Corp. Notre-Dame de Bon-Secours, 95 DTC 5017, [1994] 3 S.C.R. 3, [1995] 1 CTC 241
In the context of an extended discussion of the principles of statutory interpretation relevant to taxing statutes (in this instance, the Act...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Statutory Interpretation - Resolving Ambiguity | 183 |
Pollock v. The Queen, 94 DTC 6050, [1994] 2 CTC 385, [1994] 1 CTC 3 (FCA)
After rejecting the taxpayer’s submission that where some of the Minister’s assumptions were demolished by the taxpayer, the Minister’s...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 9 - Computation of Profit | ACB-style addition for shares held on income account | 82 |
W. Hanley & Co. Ltd. v. The Queen, 90 DTC 6354, [1990] 2 CTC 71 (FCTD)
At the time of reassessing the taxpayer, Revenue Canada indicated that it regarded the taxpayer's interest in a property as having been acquired...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 9 - Capital Gain vs. Profit - Real Estate | 133 |
First Fund Genesis Corp. v. The Queen, 90 DTC 6337, [1990] 2 CTC 24 (FCTD)
The taxpayer was assessed for Part VIII tax on the basis that its scientific research and experimental development credit did not include an...
Youngman v. The Queen, 90 DTC 6322, [1990] 2 CTC 10 (FCA)
It was not sufficient, in order to displace the onus on the taxpayer arising as a result of the assumption pleaded by the Minister that a...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 15 - Subsection 15(1) | benefit reduced by interest-free loan made by shareholder | 263 |
The Queen v. Mattabi Mines Ltd., 89 DTC 5357, [1989] 2 CTC 94 (FCTD), aff'd 92 DTC 6252 (FCA)
The Minister's Statement of Claim contained an assumption that the taxpayer's reagents were not held for sale, whereas in fact the assessor had...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(gg) | 77 | |
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Inventory | 77 |
Grohne v. The Queen, 89 DTC 5220, [1989] 1 CTC 434 (FCTD)
Because the conferral of a s. 15(1) benefit was not among the Minister's assumptions at the time of reassessment, the onus was on the Crown at...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 15 - Subsection 15(1) | mere fulfillment of contractual obligation | 148 |
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Employee | 32 | |
| Tax Topics - Income Tax Act - Section 7 - Subsection 7(5) | 149 | |
| Tax Topics - Income Tax Act - Section 9 - Capital Gain vs. Profit - Shares | 64 |
Smith, Kline & French Laboratories Ltd. v. A.G. (Can.), 89 DTC 5205, [1989] 2 CTC 63 (FCTD)
There is a common law presumption in support of public access to the courts and court records, and the burden of persuading the court that access...
Interprovincial Co-operative Ltd. v. The Queen, 87 DTC 5115, [1987] 1 CTC 222 (FCTD)
Since the basis of disallowing the taxpayer's CCA claims was made known to the taxpayer both in the pre-pleading period and the pleading period...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 135 - Subsection 135(4) - Income of the Taxpayer Attributable to Business Done With Members | 53 | |
| Tax Topics - Income Tax Regulations - Regulation 1102 - Subsection 1102(1) - Paragraph 1102(1)(c) | property acquired only because parent so directed | 92 |
Wise v. The Queen, 86 DTC 6023, [1986] 1 CTC 169 (FCA)
Since the Minister in the Federal Court of Appeal was trying to support his assessments on grounds that were different than those upon which they...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 54 - Adjusted Cost Base | deposit | 63 |
The Queen v. Bassani, 85 DTC 5232, [1985] 1 CTC 314 (FCTD)
The Crown must plead secondary intention expressly in order to shift the burden of proof with respect to secondary intention to the taxpayer.
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 9 - Capital Gain vs. Profit - Real Estate | 201 |
Tony Mele Incorporated v. The Queen, 85 DTC 5196, [1985] 1 CTC 252 (FCTD)
The onus on the taxpayer to dislodge the assumptions of the Minister is not satisfied by establishing that the Revenue Canada auditor was unable...
Krassman v. The Queen (1979), 102 D.L.R. (3d) 262 (FCTD)
It is rare for there to be contradictory evidence in a tax case and accordingly, although the Court should not disbelieve witnesses without valid...
Farmer Construction Ltd. v. The Queen, 83 DTC 5215, [1983] CTC 198 (FCTD)
In a case where the only issue was whether an asset disposed of was a capital asset or a trading asset, then the onus of proof rested on the...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Other Legislation/Constitution - Federal - Federal Courts Act - Subparagraph 46(1)(a)(v) | 73 |
Hillsdale Shopping Centre Ltd. v. The Queen, 81 DTC 5261, [1981] CTC 322 (FCA)
"If a taxpayer, after considering a reassessment made by the Minister, the Minister's reply to the taxpayer's objections, and the Minister's...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Business | 59 | |
| Tax Topics - Income Tax Act - Section 9 - Capital Gain vs. Profit - Options | 96 |
Kit-Win Holdings (1973) Ltd. v. The Queen, 81 DTC 5030, [1981] CTC 43 (FCTD)
"If the Minister has failed to allege as a fact an essential ingredient to the validity of the assessment under the applicable statutory provision...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - General Concepts - Purpose/Intention | 41 | |
| Tax Topics - Income Tax Act - Section 9 - Capital Gain vs. Profit - Real Estate | 79 |
The Queen v. Farmparts Distributing Ltd., 80 DTC 6157, [1980] CTC 205 (FCA)
Although the Court agreed that a portion of the payment in question fell within the language of s. 212(1)(d)(i), the Minister had taken an...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 212 - Subsection 212(1) - Paragraph 212(1)(d) - Subparagraph 212(1)(d)(i) | right to buy and resell product not a right to use | 204 |
| Tax Topics - Income Tax Act - Section 212 - Subsection 212(1) - Paragraph 212(1)(d) | lump sum paid irrespective of user not "royalty" | 143 |
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Property | 13 | |
| Tax Topics - Statutory Interpretation - Interpretation/Definition Provisions | "including" enlarges | 105 |
Simpson v. The Queen, 79 DTC 5336 (FCTD)
In an interpleader action, the onus was on the Crown to show that the owner of an aircraft, which had been seized on behalf of the Department, was...
Tobias v. The Queen, 78 DTC 6028, [1978] CTC 113 (FCTD)
The Minister in his Statement of Defence alleged additional facts in support of the assessment in addition to relying upon the assumptions he made...
Quality Chekd Dairy Products Association v. MNR, 67 DTC 5303, [1967] CTC 452 (Ex Ct)
Because the Minister had failed in its pleading to adduce evidence as to the proper apportionment in the amount of a fee received by the taxpayer...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 212 - Subsection 212(1) - Paragraph 212(1)(d) - Subparagraph 212(1)(d)(i) | 171 | |
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Property | 134 |
See Also
Hong Kong Style Café Ltd. v. The Queen, 2022 TCC 9
The corporate taxpayers were alleged by the Minister to have used “zapping” software to delete a portion of the sales recorded in their sales...
Gervais Auto Inc. v. Agence du revenu du Québec, 2021 QCCA 459
The taxpayer financed its inventory of used automobiles held for resale through unsecured loans from the family Holdcos that were its...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(c) | 10% interest rate on unsecured loans from shareholders was not unreasonable | 503 |
| Tax Topics - Income Tax Act - Section 67 | interest rate fell within a reasonable range | 263 |
Damis Properties Inc. v. The Queen, 2021 TCC 24
The taxpayers, after their subsidiaries realized capital gains liabilities from the sale of a farm (held through partnerships), sold those...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 160 - Subsection 160(1) | s. 160 did not apply to a sale of companies holding cash sales proceeds to a purchaser who purported to eliminate the tax liability | 785 |
| Tax Topics - Income Tax Act - Section 245 - Subsection 245(1) - Tax Benefit | no tax benefit based on comparison to a commercially unrealistic alternative | 276 |
| Tax Topics - Income Tax Act - Section 245 - Subsection 245(3) | no avoidance transaction where there was no intention to avoid the provision purportedly abused | 339 |
| Tax Topics - Income Tax Regulations - Regulation 1102 - Subsection 1102(1) - Paragraph 1102(1)(c) | software was not acquired with an income-producing purpose | 282 |
Agence du revenu du Québec v. Unidisc Musique Inc., 2021 QCCA 393
After finding that the taxpayer’s acquisition of master recordings included the acquisition of significant intangible rights (including the...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Regulations - Schedules - Schedule II - Class 14.1 | master recordings were intangible (Class 14.1) rather than tangible (Class 8) property | 341 |
| Tax Topics - Income Tax Regulations - Schedules - Schedule II - Class 8 - Paragraph 8(j) | the portion of the value of master recordings that was tangible property was not demonstrated by the taxpayer | 269 |
| Tax Topics - Income Tax Act - Section 152 - Subsection 152(8) | misunderstanding by the ARQ of the Copyright provisions supporting its reassessment did not invalidate it | 152 |
Agracity Ltd. v. The Queen, 2020 TCC 91
In finding that somewhat limited evidence of the taxpayer (“AgraCity“) was sufficient to reverse CRA transfer pricing adjustments, Boyle J...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - General Concepts - Sham | confused books and records, where no intent to deceive, were not indicative of sham | 574 |
| Tax Topics - Income Tax Act - Section 247 - New - Subsection 247(2) - Paragraph 247(2)(b) | no evidence proffered that arm’s length parties would not have entered into non-resident goods seller/domestic servicing transactions | 494 |
| Tax Topics - Income Tax Act - Section 247 - New - Subsection 247(2) - Paragraph 247(2)(a) | fee earned by Canadian servicer fell within “rough, but … acceptable, range of what an arm’s length service provider might have enjoyed” | 303 |
| Tax Topics - Income Tax Act - Section 95 - Subsection 95(2) - Paragraph 95(2)(a.1) | assessments based on s. 95(2)(a)(a.1) dropped by Crown | 221 |
Wachal v. The Queen, 2020 TCC 78 (Informal Procedure)
The taxpayer’s eligibility for Canada child tax benefit for his son turned primarily on whether he qualified as the “eligible individual”...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 122.62 - Subsection 122.62(1) | CCTB claims denied based on 11-month rule | 53 |
| Tax Topics - Income Tax Act - Section 122.6 - Eligible Individual - Paragraph (b) - Subparagraph (b)(i) | failure of Minister to plead the factors referenced in Reg. 6302 meant that the taxpayer could establish eligibility | 250 |
1455257 Ontario Inc. v. The Queen, 2020 TCC 64, aff'd 2021 FCA 142
The taxpayer was assessed under s. 160 regarding a transfer of property in 2003 to it by an affiliate which was alleged to have unpaid taxes for...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 152 - Subsection 152(6) | a CRA policy to adjust loss carrybacks, to a reassessed year, beyond the s. 152(6) period, had no statutory authority | 698 |
| Tax Topics - Income Tax Act - Section 160 - Subsection 160(1) - Paragraph 160(1)(e) - Subparagraph 160(1)(e)(ii) | s. 160(1)(e)(ii) extended to post-transfer interest | 395 |
Andersen v. The Queen, 2020 TCC 51 (Informal Procedure)
The taxpayers terminated life insurance policies for personal purposes, and were ultimately reassessed to include in their income the gross...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 148 - Subsection 148(1) | Minister’s reassessments for unreported insurance proceeds failed due to failure to assume what was the policies’ adjusted cost basis | 238 |
Lohas Farm Inc. v. The Queen, 2019 TCC 197
Before going on to find that the appellant (Lohas) had met its burden of establishing that the buyers of iPhones that it then exported were not...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - General Concepts - Agency | buyers made purchases of iPhones as agents for a grey market reseller | 450 |
| Tax Topics - Excise Tax Act - Regulations - Input Tax Credit Information (GST/HST) Regulations - Section 3 - Paragraph 3(c) - Subparagraph 3(c)(ii) | missing names in receipts issued by vendor were cured by memo maintained by the purchaser | 205 |
| Tax Topics - Excise Tax Act - Section 169 | purchases were made as agent for grey market registrant | 278 |
Monsell v. The Queen, 2019 TCC 5 (Informal Procedure)
The taxpayers (a husband and wife) received payments from a corporation that had been reassessed for its 2005 to 2007 taxation years and had not...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 160 - Subsection 160(1) | CRA has the onus of substantiating assessments underlying s. 160 assessments where it had superior records access | 324 |
| Tax Topics - Income Tax Act - Section 125 - Subsection 125(3) - Paragraph 125(3)(b) | SBD denied because no agreement made | 102 |
Morrison v. The Queen, 2018 TCC 220, aff'd sub nom. Eisbrenner v. Canada, 2020 FCA 93
One of the taxpayers (“Eisbrenner”) participated in the “CHT Program” under which they or other clients would make a cash donation to a...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 118.1 - Subsection 118.1(1) - Total Charitable Gifts | gift was not vitiated by benefits | 548 |
| Tax Topics - General Concepts - Fair Market Value - Other | Ontario list price of generic pharmaceuticals substantially exceeded their FMV in the international market | 211 |
Agence du revenu du Québec v. Stamatopoulos, 2018 QCCA 474
A taxpayer (Stamatopoulos) serviced clothing manufacturers by securing sewing services for clothes that then were delivered to the manufacturer....
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Regulations - Input Tax Credit Information (GST/HST) Regulations - Section 2 - Intermediary | ARQ failed to establish that a named supplier to the taxpayer did not act as a supplier or intermediary | 442 |
| Tax Topics - Excise Tax Act - Section 169 - Subsection 169(4) | burden shifted to ARQ once taxpayer showed that it had business dealings with suppliers named in invoices | 272 |
Custodio v. The Queen, 2018 CCI 47
After noting that proof of the requirement in s. 227.1(2)(a) was normally demonstrated by the deposit of the certificate for the delinquent amount...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 227.1 - Subsection 227.1(2) - Paragraph 227.1(2)(a) | failure of Crown to tender documents proving the unsatisfied-execution requirement | 295 |
Pellerin v. Agence du revenu du Québec, 2017 QCCA 1339
After stating (at para. 16) that s. 1014 of the Taxation Act (similar to ITA) “provides that the burden of proof rests on the taxpayer who...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 152 - Subsection 152(8) | statement of onus embedded in s. 152(8) | 79 |
Gerbro Holdings Company v. Canada, 2016 TCC 173, briefly aff'd 2018 FCA 197
After stating (at para. 67) that "assumptions of law or mixed fact and law are not binding on this Court," Lamarre ACJ stated (at para. 73):
The...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 94.1 - Subsection 94.1(1) | offshore hedge fund investments were chosen in the main for commercial reasons (e.g., manager reputation), so that s. 94.1 did not apply | 361 |
| Tax Topics - Statutory Interpretation - Hansard, explanatory notes, etc. | Minister's statement was false | 130 |
| Tax Topics - Other Legislation/Constitution - Federal - Tax Court of Canada Rules (General Procedure) - Section 145 - Subsection 145(3) | expert's report did not include all the underlying data | 115 |
Szymczyk v. The Queen, 2014 TCC 380 (Informal Procedure)
The taxpayer's employer, General Motors, frequently assigned new vehicles to its executives and senior managers, the taxpayer included, in order...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - General Concepts - Estoppel | Minister's authorization should not be set aside too readily as being contrary to law | 329 |
| Tax Topics - Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(k) | late designation not permitted/rule-of-thumb method invalidated by s. 6(1)(k) | 201 |
| Tax Topics - Income Tax Act - Section 6 - Subsection 6(2) | separate personal use kilometers required for each vehicle used in year | 183 |
0742443 B.C. Ltd. v. The Queen, 2014 DTC 1208 [at 3811], 2014 TCC 301, aff'd 2015 DTC 5115 [at 6304], 2015 FCA 231
Respecting an alleged faulty Reply of the Minister, C Miller J stated obiter (at para. 32):
If a reply is faulty by pleading law as an assumption,...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 125 - Subsection 125(7) - Specified Investment Business | storage charges were property income, cf. hotel revenue | 255 |
Bekesinski v. The Queen, 2014 DTC 3604 [at 1169], 2014 TCC 245
The appellant contended that he had resigned as director in 2006, so that an assessment under s. 227.1(1) in 2010 was out of time. The Minister...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 227.1 - Subsection 227.1(4) | appellant, who likely backdated resignation, was plausible enough to demolish assumptions | 98 |
Health Quest Inc v. The Queen, 2014 TCC 211 (Informal Procedure)
The appellant ("Health Quest") distributed footwear for the relief of various disabling conditions of the foot.. The Minister reassessed the...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Schedules - Schedule VI - Part II - Section 24.1 | insufficient product design evidence | 193 |
Galachiuk v. The Queen, 2014 DTC 1153 [at 3494], 2014 TCC 188
The taxpayer failed to report $683 of income for 2008 and $436,890 for 2009. The 2009 income was not subject to a s. 163(1) penalty if the...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 163 - Subsection 163(1) | due diligence is available for the first relevant year, not only the second | 248 |
Drouin v. The Queen, 2014 DTC 1016 [at 2564], 2013 TCC 139
In the course of successfully demonstrating that a franchise agreement and related arrangements with a Barbados corporation reflected a genuine...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 3 - Paragraph 3(a) - Business Source/Reasonable Expectation of Profit | arrangement looking like Barbados tax shelter was in fact genuine business | 124 |
Dr. Mike Orth Inc. v. The Queen, 2013 DTC 1110 [at 588], 2013 TCC 123 (Informal Procedure)
The taxpayer simultaneously sought to rebut the Minister's assumptions relating to its appeal and to claim privilege over documents closely...
Poulin v. The Queen, 2013 DTC 1102 [at 545], 2013 TCC 104
Hershfield J found that the Minister's affidavit was inadequate to establish under s. 244(10) that the taxpayer's Notice of Objection had been...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 244 - Subsection 244(10) | 163 |
Mignardi v. The Queen, [2013] GSTC 39, 2013 TCC 67 (Informal Procedure)
The Minister assessed the appellant for director's liability in respect of a corporation that had not remitted net tax for reporting periods...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 323 - Subsection 323(1) | onus on Minister where taxpayer had no financial involvement | 116 |
| Tax Topics - Excise Tax Act - Section 323 - Subsection 323(3) | failure to monitor other director | 73 |
| Tax Topics - Excise Tax Act - Section 323 - Subsection 323(5) | no constructive resignation | 65 |
| Tax Topics - Income Tax Act - Section 160 - Subsection 160(1) | onus on Minister where taxpayer had no financial involvement | 116 |
Pawlak v. The Queen, 2012 TCC 355 (Informal Procedure)
Webb J found that the obligation of the Minister to take unclaimed input tax credits into account in an HST audit under s. 296(2) of the Excise...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 296 - Subsection 296(2) | 178 |
Basi v. The Queen, 2012 DTC 1282 [at 3836], 2012 TCC 345
Webb J. found that the taxpayer was successful in demolishing the Minister's assumptions relating to the proceeds of disposition of two...
Brewster v. The Queen, 2012 DTC 1178 [at 3451], 2012 TCC 187 (Informal Procedure)
Webb J. found that it was improper for the Minister to assume that investments which the taxpayer acquired with RRSP funds were not qualified...
SoftSim Technologies Inc. v. The Queen, 2012 DTC 1187 [at 3473], 2012 TCC 181
The taxpayers' former counsel had reached a settlement agreement with the Minister, which the taxpayers argued had not been authorized by them. ...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - General Concepts - Agency | consent of counsel binding | 104 |
| Tax Topics - Income Tax Act - Section 169 | 116 | |
| Tax Topics - Income Tax Act - Section 171 - Subsection 171(1) | 50 | |
| Tax Topics - Income Tax Act - Section 232 - Subsection 232(1) - Solicitor-Client Privilege | 117 |
Marshall v. The Queen, 2012 DTC 1068 [at 2815], 2012 TCC 21
The taxpayer was the sole shareholder and director of Internorth Limited ("IL") and a majority shareholder and director of Internorth Construction...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 153 - Subsection 153(1) - Paragraph 153(1)(a) | not liable for amounts paid as agent | 146 |
Szollosi Bens v. The Queen, 2011 TCC 240
Webb J. quashed the Minister's motion to dismiss the taxpayer's appeal from assessments under the Income Tax Act and Excise Tax Act, even though...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 285.1 - Subsection 285.1(16) | 99 | |
| Tax Topics - Income Tax Act - Section 163 - Subsection 163(3) | 99 |
Rail v. The Queen, 2011 DTC 1190 [at 1057], 2011 TCC 130
The Minister disallowed a number of the taxpayer's expenses allegedly connected to his dentistry practice so as to reduce the taxpayer's profit...
Richard A. Kanan Corporation v. The Queen, 2011 DTC 1168 [at 928], 2011 TCC 211 (Informal Procedure)
The Minister disallowed the taxpayer's deduction of certain legal expenses. The only documentary evidence provided by the taxpayer as to the...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 232 - Subsection 232(1) - Solicitor-Client Privilege | 299 |
Blais v. The Queen, 2011 DTC 1008 [at 55], 2010 TCC 195 (Informal Procedure)
The taxpayers refused to produce their documents before the Minister filed its Notices of Assessment, but did produce them after filing their...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 96 | partnership cannot deduct salary paid to a partner | 61 |
Husky Oil Limited v. Canada, 2010 DTC 5089 [at 6887], 2010 FCA 125
Sharlow, J. A. noted (at para. 52) that as the Minister had assessed the taxpayer under s. 87(4) on the basis that shares received by it on an...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 69 - Subsection 69(4) | 190 | |
| Tax Topics - Income Tax Act - Section 87 - Subsection 87(4) | 184 | |
| Tax Topics - Statutory Interpretation - Specific v. General Provisions | 190 |
4528957 Manitoba Ltd. c. M.R.N., 2009 DTC 1218, 2009 TCC 298
The Minister assessed the taxpayer under s. 153(1) of the Income Tax Act and the taxpayer filed a Notice of Objection under the Canada Pension...
Douthwright v. The Queen, 2007 DTC 1614, 2007 TCC 560 (Informal Procedure)
Given that the Crown had not made any assumptions of fact as to what portion of the reimbursement amounts made by the taxpayer were on account of...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 8 - Subsection 8(1) - Paragraph 8(1)(f) | 322 |
Parker Brothers Textile Mills Limited v. The Queen, 2007 DTC 610, 2007 TCC 74
In finding that all of the fee paid by the taxpayer should be treated as deductible under paragraph 20(1)(dd), Hershfield J. stated (at para....
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(dd) | related company could acquire the site | 125 |
| Tax Topics - Statutory Interpretation - Interpretation Bulletins, etc. | 60 |
Cloverdale Paint Inc. v. The Queen, 2007 DTC 243, 2006 TCC 628
The wholly-owned U.S. subsidiary of the taxpayer accumulated a large balance owing to the taxpayer as a result of its purchase of paint inventory...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(l) | 127 |
Hawa v. The Queen, 2007 DTC 28, 2006 TCC 612 (Informal Procedure)
The Reply of the Crown to the taxpayer's Notice of Appeal with respect to an assessment that treated losses the taxpayer sustained in securities...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(b) - Capital Loss v. Loss | frequent stock trading | 54 |
Anchor Pointe Energy Ltd v. The Queen, 2006 DTC 3365, 2006 TCC 424
The Minister originally had reassessed the taxpayer on the basis that it was entitled to claim a deduction in respect of the fair market value of...
Crystal Beach Park Limited v. The Queen, 2006 DTC 2845, 2006 TCC 183
The evidence of the field auditor indicated that an assumption pleaded by the Minister had not in fact been in his mind at the time of assessing....
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 11 - Paragraph 11(5)(a) | 218 |
Arnold v. The Queen, 2005 DTC 1699, 2005 TCC 725 (Informal Procedure)
After finding that the taxpayer was not subject to the self-supply rule in s. 191(1) of the Excise Tax Act (because the taxpayer was not a...
Orly Automobiles Inc. v. Canada, 2005 FCA 425
In the course of an appeal regarding input tax credits, the taxpayer argued that, having failed to disclose assumptions at or prior to the time of...
Borys v. The Queen, 2005 DTC 1069, 2005 TCC 397
After noting an ambiguous statement of assumptions in the Minister's pleadings, Bowman C.J. stated (at p. 1071):
"Where assumptions (or for that...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Small Business Corporation | 112 | |
| Tax Topics - Income Tax Act - Section 39 - Subsection 39(1) - Paragraph 39(1)(c) | 112 |
Morley v. The Queen, 2004 DTC 2604, 2004 TCC 280, briefly aff'd 2006 DTC 6351, 2006 FCA 171
After agreeing with counsel for the taxpayer that a taxpayer has met the onus to demolish the assumptions of fact made by the Minister if the...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Other Legislation/Constitution - Charter (Constitution Act, 1982) - Section 8 | 38 | |
| Tax Topics - General Concepts - Evidence | 32 | |
| Tax Topics - General Concepts - Fair Market Value - Other | 98 | |
| Tax Topics - Income Tax Act - Section 13 - Subsection 13(21) - Undepreciated Capital Cost - A | 177 | |
| Tax Topics - Income Tax Act - Section 13 - Subsection 13(27) - Paragraph 13(27)(d) | 88 | |
| Tax Topics - Income Tax Act - Section 251 - Subsection 251(1) - Paragraph 251(1)(c) | non-arm's length terms | 109 |
| Tax Topics - Income Tax Act - Section 96 | start-up activities sufficient to constitute carrying on business in common | 112 |
Holm v. The Queen, 2003 DTC 755 (TCC)
Bowman A.C.J. stated (at p. 759):
"If the court sees many more instances of pleading incomplete, inaccurate or misleading assumptions we may have...
Molson Brewery BC Ltd. v. Canada, [2002] FCJ No. 87 (FCTD)
The taxpayer carried on a brewery business as agent for its parent. Before going on to find that a transaction in which the taxpayer and another...
Shaughnessy v. The Queen, 2002 DTC 1272 (TCC)
After noting that the Minister had pleaded "boiler plate" assumptions, Bowman A.C.J. stated (at p. 1275):
"The entire system developed in our...
Weisz Rocchi & Scholes v. The Queen, [2001] 2 CTC 2520, 2001 DTC 3705 (TCC)
Bowman T.C.J. indicated that the onus put on a taxpayer to challenge an assessment of the Crown did not apply where the Minister imposed a...
Hallatt v. The Queen, 2001 DTC 128 (TCC)
After referring to Johnston v. MNR, [1948] S.C.R. 486, Bowman A.C.J. stated (at p. 133):
"Rand, J. spoke of 'demolishing' the basic fact upon...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - General Concepts - Fair Market Value - Other | 16 |
Bell v. The Queen, 97 DTC 484, [1996] 2 CTC 2191 (TCC)
Given that the matter in controversy (whether a program had been financed with a federal appropriation) was a matter that could be much more...
Bowens v. The Queen, 94 DTC 1853, [1994] 2 CTC 2404 (TCC), aff'd 96 DTC 6128 (FCA)
Revenue Canada originally assessed the taxpayer on the assumption that the taxpayer was not dealing at arm's length with another entity...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 7 - Subsection 7(1) - Paragraph 7(1)(b) | 185 |
Graham v. The Queen, 92 DTC 1012, [1991] 2 CTC 2712 (TCC)
Before going on to find that the Crown had failed to provide admissible evidence that the taxpayer's appeal to the Tax Court was out of time,...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 169 | 149 | |
| Tax Topics - Income Tax Act - Section 244 - Subsection 244(10) | 67 |
Brad-Lea Meadows Ltd. v. MNR, 90 DTC 1269, [1990] 1 CTC 2306 (TCC)
The onus was on the Minister to adduce evidence of the proper apportionment to be made, respecting an "affiliation fee" paid by the taxpayer to a...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 212 - Subsection 212(1) - Paragraph 212(1)(d) - Subparagraph 212(1)(d)(i) | 145 |
Gross v. MNR, 89 DTC 660, [1990] 1 CTC 2005 (TCC)
In his Reply to the Appeal of the taxpayer from a reassessment which had disallowed a deduction of $70,000 for a donation which the taxpayer had...
Anderson Logging Co. v. The Queen, 52 DTC 1209 (SCC), aff'd 52 DTC 1215 (PC)
At 1211:
"... the appellant is in the same position as any other appellant. He must shew that the impeached assessment is an assessment which...
Administrative Policy
8 June 2004 Internal T.I. 2004-0067401I7 F - Dépenses d'une entreprise illégale
The taxpayer, who had been charged for carrying on an illegal activity, and had not kept books and records, was then proposed to be assessed under...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 9 - Computation of Profit | onus on taxpayer, who did not keep records, to displace the net worth assessment method results | 177 |
| Tax Topics - Income Tax Act - Section 20 - Subsection 20(16) | terminal loss when illegal equipment was forfeited to the Crown by court order | 122 |
| Tax Topics - Income Tax Act - Section 13 - Subsection 13(21) - Disposition of Property | disposition when illegal equipment was forfeited to the Crown by court order, rather than when it was seized by the RCMP | 167 |
| Tax Topics - Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(a) - Legal and other Professional Fees | legal fees incurred to defend criminal charges for carrying on an illegal drug business were non-deductible | 138 |